For single moms, every dollar counts more than ever, especially if you have to cover all of the family’s expenses on just one source of income which could be your job. Coronavirus crisis has been challenging for everyone. But for single mothers, it is more challenging than ever. Having to homeschool kids and navigating through the already strained job market are just a few of the challenges single moms are facing during this difficult time. Ever since the COVID-19 struck the world, there have been efforts to provide financial support to single moms.
Supporting Single Moms’ Small Businesses
Government is supporting single moms in overcoming financial challenges faced by single mom-owned small businesses. This has mainly been done through the Paycheck Protection Program. A total of $ 350 billion has been used to fund this program.
The purpose of PPP is to enable single moms with small businesses to continue paying their workers and to cover other costs during coronavirus outbreak. Find out more at https://www.coronavirus.gov/smallbusiness/.
U.S. Department of Commerce
Apart from immediately implementing the CARES (Coronavirus Aid, Relief, and Economic Security) Act, the U.S. Department of Commerce promised to provide support to single moms through grants and any other resources they need during this COVID-19 outbreak. To support this, President Trump signed the Act which authorized the delivery of over $2 trillion. https://www.commerce.gov/sites/default/files/2020-07/Commerce%20CARES%20Act%20Implementation%20Plan–Section%2015011%20PRAC%20Report–June%202020–Final.pdf shows the implementation plan of the U.S. Department of Commerce CARES Act.
Department of Economic Administration (EDA)
The U.S. Secretary of Commerce, Wilbur Ross announced that the Department of Economic Administration (EDA) is now accepting applications from eligible grantees for EDA CARES Act Recovery Assistance intended to support single moms during this difficult time.
Through the CARES act Recover Assistance, the projects that EDA may fund include:
- Economic recovery planning and preparing technical assistance strategies to address economic dislocations caused by the coronavirus pandemic.
- Preparing or updating resiliency plans to respond to future pandemics.
- Implementing entrepreneurial support programs to diversify economies.
- Constructing public works and facilities that will support economic recovery, including the deployment of broadband for purposes.
- Supporting telehealth and remote learning for job skills.
Resources to Help You Make Financial Decisions
Mortgage and Housing Assistance During the Coronavirus Pandemic
If you are a single mom, this pandemic has probably made life much difficult for you, especially if you reside in a rented house. You may worry about how to pay your rent or mortgage, now that coronavirus led to financial hardship for most people. The Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and U.S. Department of Housing and Urban Development (HUD) are working to help make life easy for single moms by helping homeowners and renters during the Covid-19 pandemic.
Federal Housing Finance Agency (FHFA)
Considering the impact of coronavirus on the housing finance market, FHFA is working in updating the policies and guidance to ensure its regulated entities like the Federal Home Loan Banks (FHLBanks) are providing market liquidity to enable single moms to survive during this difficult time. because FHFA is a financial regulator, it cannot directly support single moms experiencing financial hardship in paying rent or mortgages. The financial regulator, therefore, encourages single moms facing financial hardship as a result of Covid-19 to contact their landlords or mortgage servicer to see if they qualify for payment relief. Visit https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/ to see which options for mortgage and rent payment relief can work for you.
Help for Single Mom Homeowners
If you feel you are unable to settle your mortgage and either Fannie Mae or Freddie Mac owns your loan, you may be eligible to delay your monthly payments for a mortgage for a certain period during which, you won’t be charged for making late payments, and foreclosure, as well as other legal proceedings, will be suspended. Use “loan lookup” tools to check your eligibility. For Fannie Mae, visit https://www.knowyouroptions.com/loanlookup and https://ww3.freddiemac.com/loanlookup/ to find out from Freddie Mac.
Single moms are required to immediately contact their mortgage servicer to let them know their current circumstances. You may be eligible for additional financial assistance if you feel you shall have not recovered by the end of the relief period.
Beware of Scams
Following the outbreak of coronavirus pandemic, there is an increased rate of fraud and scams. You need to stay safe during this period by asking questions, reading resources you are given, and most importantly, avoiding any solicitations that require up-front cash payments. For single moms who have been victims of a scam, and your concerns with Federal Home Loan Bank involve fraud, contact the office of the Inspector General of FHFA at 800-793-7724 or visit http://www.fhfaoig.gov/ReportFraud.
Support with Credit Card
Single moms who are unable to pay their credit cards may need to talk to their credit card companies to let them know of their current circumstances. You may qualify for relief. Also, you may talk to your credit counselor who will advise you on your money and debts and help you come up with a proper budget that satisfies your needs.